Judge approves $1.6m payment to Voyager employees

A federal judge has ruled that embattled cryptocurrency lender Voyager Digital, which is currently in bankruptcy, can pay more than 30 employees $1.6m as a “retention bonus”.

The names and positions of the employees who will be on the receiving end of the bonus were sealed as per judge Michael Wiles ruling.

The move was understandably controversial for many onlookers and creditors who objected to the move as early as last week and said that given the company’s current financial standing, no such bonuses must be paid.

Creditors filed a complaint in which they insisted that the names of the people receiving the bonus should be known.

One of the reasons why is that, according to creditors, those employees may not be eligible for bonus payments at all. The only way for the public to know is to make their names known.

However, Voyager attorney Michael Slade assured that the senior management team was not involved and explained the need for secrecy on this occasion.

“This program does not involve the senior management team, and data about these individuals would typically not exist in the public domain. We note that no creditor or shareholder or economic stakeholder has objected to the motion to seal”, Slade added.

Originally, Voyager wanted to pay $1.9m to 38 employees, but some people have left since the bankruptcy proceedings in mid-summer began.

Meanwhile, Slade assured that Voyager is already looking into cost-cutting measures, one of which is touted as saving the company more than $4.6m in the foreseeable future.

A creditor complained that she had lost $450,000 while Voyager executives were still able to draw salaries.

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Updated: 08/26/2022 — 14:00